Tags: jc penney | holiday | sales | drop

J.C. Penney Holiday Sales Drop Slightly, Making Stocks Slide Again

Image: J.C. Penney Holiday Sales Drop Slightly, Making Stocks Slide Again

A J.C. Penney employee works at a cashier station at the Newport Mall store during Black Friday Sales on Nov. 27, 2015, in Jersey City, New Jersey. (Kena Betancur/Getty Images)

By    |   Friday, 06 Jan 2017 02:44 PM

Like competitors Macy's and Kohl's, J.C. Penney on Friday reported a holiday sales drop in same-store sales, causing stocks to decline further.

J.C. Penney's same-store sales were .8 percent lower in November and December than last year, with the first three weeks of November bearing the brunt of the decline, according to Chief Executive Marvin Ellison, The Wall Street Journal reported. Last year, Penney’s same-store sales increased 3.9 percent in the same time period.

Ellison said women’s apparel sales continued to be weak, which helped drive the decline along with an increase in online shopping throughout the holiday season.

Amazon reported 2016 as its best year to date, and overall holiday shopping was estimated to be up about 3.6 percent this year, Reuters reported.

Analysts also said early holiday promotions and an expectation that deals might persist or even improve hindered the November sales of several retailers, Reuters reported. Thanksgiving through the end-of-December sales were strong for J.C. Penney, bolstered by sales of boots, appliances, and toys.

News of the decline led stock in the company to drop another 5.6 percent before the markets opened Friday, down to $7.42. J.C. Penney stock had already slid 16 percent in the last three months, the WSJ reported.

The company was able, however, to maintain its earnings before interest, taxes, depreciation and amortization target of $1 billion for the year, which ends January 2017, giving some investors hope that retail chains like J.C. Penney, Macy’s, and Kohl’s can weather the current storm of changes plaguing the sector.

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Like competitors Macy's and Kohl's, J.C. Penney on Friday reported a holiday sales drop in same-store sales, causing stocks to decline further.
jc penney, holiday, sales, drop
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2017-44-06
Friday, 06 Jan 2017 02:44 PM
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